Tether CTO: I’m pleased to see JPMorgan recognizing the importance of Tether and the company’s stablecoin technology
Tether’s growing dominance is a negative for the stablecoin industry and the cryptocurrency ecosystem as a whole. This opinion was recently expressed by experts from JPMorgan.
They pointed to the prospects of consideration by American congressmen of the “Payment Transparency Act” in stablecoins and the creation of a mechanism for regulating such assets in other countries. For example, MiCA is planned to be partially implemented in the European Union this summer.
“Tether is mostly at risk given its lack of regulatory compliance and transparency. We therefore view the increasing concentration in Tether over the past year as a negative for the stablecoin universe and the crypto ecosystem more broadly,” noted JPMorgan analysts led by Nikolaos Panigirtzoglou.
According to experts, stablecoin issuers that are willing to comply with existing rules will benefit from increased regulatory oversight and will eventually increase their market share.
“I’m happy to read that JPMorgan acknowledges the importance of Tether and the stablecoin technology created by our company. But it seems to me a bit hypocritical the talk about concentration coming from JPMorgan, the biggest bank in the world,” commented Paolo Ardoino, technical director of the USDT issuer.
He stated that Tether’s success is due to the reliability of the asset, significant reserves and commitment to jurisdictions with emerging economies, where entire communities use the crypto coin as a “lifeline” to protect their funds from rising inflation and devaluation of local currencies.
In addition, he recalled that the USDT issuer cooperates with regulators, including to ensure that the authorities do not create obstacles in expanding the blockchain infrastructure.
Tether’s capitalization already exceeds $96 billion, according to Coinmarketcap data. And, according to Bloomberg analysts, in the near future it will exceed the $100 billion mark.
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